KARACHI: Ellcot Spinning Mills Limited reported a decline in profitability for the nine months ended March 31, 2026, as rising operating and finance costs weighed on earnings despite relatively stable revenue performance.
According to the company’s condensed interim financial statements, net sales for the nine-month period stood at Rs11.99 billion, compared with Rs12.11 billion in the corresponding period last year. Gross profit also edged lower to Rs771.95 million from Rs783.99 million.
The textile manufacturer reported an operating profit of Rs489.93 million, down from Rs603.31 million a year earlier. Higher selling, distribution, administrative, and finance expenses continued to pressure margins during the period. Finance costs amounted to Rs246.61 million, only slightly lower than Rs263.30 million recorded in the same period last year.
As a result, profit after tax declined by around 30% to Rs76.57 million, compared with Rs109.67 million in the corresponding nine-month period of the previous year. Earnings per share (EPS) fell to Rs6.99 from Rs10.02.
For the quarter ended March 31, 2026, however, the company posted a stronger performance, with quarterly profit after tax rising to Rs26.27 million from Rs8.94 million in the same quarter last year. Quarterly EPS improved to Rs2.40, compared with Rs0.82 previously, reflecting better profitability during the latest three-month period.
On the financial position front, Ellcot Spinning Mills’ total assets stood at Rs10.41 billion as of March 31, 2026, compared with Rs11.22 billion at the end of June 2025. Meanwhile, shareholders’ equity improved to Rs4.32 billion, supported by retained earnings despite the lower profit reported during the period.
The company also generated Rs1.54 billion in net cash from operating activities during the nine months, highlighting continued cash generation from its core business despite the decline in earnings. Cash and cash equivalents at the end of the period were reported at Rs191.16 million.
